Supply chain innovation for competing in highly competitive markets:challenges and solutions

Rapid changes in technological development are forcing businesses to continuously innovate to improve their competitiveness, which is particularly evident in logistics and supply chain management (SCM), where innovation impacts both the strategic and operational levels. Supply Chain Innovation for Competing in Highly Dynamic Markets: Challenges and Solutions investigates the role of innovation in the management of supply chains of today. This book focuses on supply chain integration from both strategic and operational perspectives and the impact of information technology-related innovation in supply chain and logistics service industries. It also analyzes how environmental innovation affects logistical decisions throughout the supply chain and the strategies employed in managing logistics-related environmental impacts. Finally, the book explores theoretical and practical implications of innovation in the management of supply systems.

Towards a unified definition of supply chain management:the four fundamentals

A wide range of definitions of supply chain management (SCM) have been developed over the last three decades. The philosophy of SCM is based firmly on a recognition that it is only by working in a more integrated manner that competitive advantage can be maximised. However, for this to become a reality the development of common definitions and understandings between supply chain partners is a critical success factor. The corollary of this is that a lack of definitional consistency and a common understanding is an inhibitor to the successful adoption of SCM thinking in practice. This paper reviews a number of definitions of SCM, as well as discussions and analyses of such definitions. This leads to the central point posited in the paper – the need for a ‘unified definition’. Such a definitional construct, labelled the Four Fundamentals of SCM, is proposed with the core of the paper providing a narrative description of this construct based on a wide range of literature.

An Investigation into Outsourcing Practice in Ireland:A New Direction in Logistics and Supply Chain Management

Companies are increasingly focusing on the development of core competencies as an integral part of their overall strategy development and implementation. The corollary of this is that functions regarded as being non-core are being outsourced. This paper investigates the case for and against outsourcing and in addition what is happening in Ireland regards outsourcing. Furthermore to analysis of current literature in the field, an Irish-wide postal and e-mail survey, as well as three case studies revealed many interesting facts. The key findings of the work are manufacturing outsourcing is now the most popular function to be outsourced for both small to medium sized enterprises (SMEs) and large enterprises. Large enterprises (LEs) do not prepare or examine hidden costs more than SMEs, nor do they differ much in relation to the use of consultants. Furthermore, the importance of time spent on preparing or producing contract, and the impact the contract can have on the supplier-buyer relation do not differ significantly. It was found that most companies outsourced within Ireland, which led to further investigation in that area. In relation to logistics outsourcing specifically, this has become very important in the supply chain over the last 20 years as an activity that was traditionally handled by firms as a support function. At that time logistics activities such as warehousing, distribution, transportation and inventory management were given low priority compared with other business functions within the organisation. However, since the customer has become more demanding, the logistics function has now become a source of competitive advantage and there has been a growing emphasis on providing good customer service.

Putting supply chain learning theory into practice:lessons from an Irish case

The logistics service market is currently going through a fundamental transition. The development of closer relationships with customers and the continuous adaptation of products and services, represent potentially successful approaches to the development of improved competitive capability. To this end knowledge resources and learning processes increasingly represent key elements within the evolving framework of the 3PL business. This paper describes the case of NITL’s Foundation Certificate Programme (FCP) learning programme with specific reference to its use in addressing some of current shortcomings related to supply chain knowledge and skills in the Irish third party logistics (3PL) industry. The FCP rationale is based on the need to move from traditional approaches of supply chain organisation where the various links in the chain were measured and managed in isolation from each other and thus tended to operate at cross purposes, towards more integrated approaches.

The implementation of supply chain management theory in practice:an empirical investigation

Purpose: The purpose of the research described in this paper is to disentangle the rhetoric from the reality in relation to supply chain management (SCM) adoption in practice. There is significant evidence of a divergence between theory and practice in the field of SCM. Design/methodology/approach: Based on a review of extant theory, the authors posit a new definitional construct for SCM – the Four Fundamentals – and investigated four research questions (RQs) that emerged from the theoretical review. The empirical work comprised three main phases: focussed interviews, focus groups and a questionnaire survey. Each phase used the authors’ definitional construct as its basis. While the context of the paper’s empirical work is Ireland, the insights and results are generalisable to other geographical contexts. Findings: The data collected during the various stages of the empirical research supported the essence of the definitional construct and allowed it to be further developed and refined. In addition, the findings suggest that, while levels of SCM understanding are generally quite high, there is room for improvement in relation to how this understanding is translated into practice. Research limitations/implications: Expansion of the research design to incorporate case studies, grounded theory and action research has the potential to generate new SCM theory that builds on the Four Fundamentals construct, thus facilitating a deeper and richer understanding of SCM phenomena. The use of longitudinal studies would enable a barometer of progress to be developed over time. Practical implications: The authors’ definitional construct supports improvement in the cohesion of SCM practices, thereby promoting the effective implementation of supply chain strategies. A number of critical success factors and/or barriers to implementation of SCM theory in practice are identified, as are a number of practical measures that could be implemented at policy/supply chain/firm level to improve the level of effective SCM adoption. Originality/value: The authors’ robust definitional construct supports a more cohesive approach to the development of a unified theory of SCM. In addition to a profile of SCM understanding and adoption by firms in Ireland, the related critical success factors and/or inhibitors to success, as well as possible interventions, are identified.

Supply chain management resources, capabilities and execution

This paper identifies inter- and intra-organisational management resources that determine the level of execution of inter-firm alliance supply chain management (SCM). By drawing on network and resource-based view theories, a conceptual model proposes the effects of SCM resources and capabilities as influencing factors on SCM execution. The model was tested using survey data from studies conducted in two European supply chain environments. Variance-based structural equation modelling confirmed the hypothesised hierarchical order of three proposed antecedents: internal SCM resources affect joint SCM resources, which in turn influence collaborative SCM-related processes and finally SCM execution. An importance-performance analysis for both settings shows that providing and investing in internal SCM resources should be a priority when aiming to increase SCM execution. The theoretical contribution of this paper lies in confirming that the improvement of SCM execution follows a clear pathway featuring internal supply chain resources as one of the main drivers. The practical implications of this research include the development of a prioritisation list of measures that elevate SCM execution in the two country settings. © 2014 © 2014 Taylor & Francis.

Managing imbalanced supply chain relationships for sustainability:a power perspective

This study adopts a power perspective to investigate sustainable supply chain relationships and specifically uses resource-dependence theory (RDT) to critically analyze buyer-supplier-supplier relationships. Empirical evidence is provided, extending the RDT model in this context. The concept of power relationships is explored through a qualitative study of a multinational company and agricultural growers in the UK food industry that work together to implement sustainable practices. We look at multiple triadic relationships involving a large buyer and its small suppliers to investigate how relative power affects the implementation of sustainable supply-management practices. The study highlights that power as dependence is relevant to understanding compliance in sustainable supply chains and to identifying appropriate relationship-management strategies to build more sustainable supply chains. We show the influences of power on how players manage their relationships and how it affects organizational responses to the implementation of sustainability initiatives. Power notably influences the sharing of sustainability-related risks and value between supply chain partners. From a managerial perspective, the study contributes to developing a better understanding of how power can become an effective way to achieve sustainability goals. This article offers insights into the way in which a large organization works with small and medium size enterprises to implement sustainable practices and shows how power management-that is, the way in which power is used-can support or hinder effective cooperation around sustainability in the supply chain. © 2014 Decision Sciences Institute.

Modelling and linking transformations in EPCIS governing supply chain business processes

Supply chains comprise of complex processes spanning across multiple trading partners. The various operations involved generate large number of events that need to be integrated in order to enable internal and external traceability. Further, provenance of artifacts and agents involved in the supply chain operations is now a key traceability requirement. In this paper we propose a Semantic web/Linked data powered framework for the event based representation and analysis of supply chain activities governed by the EPCIS specification. We specifically show how a new EPCIS event type called "Transformation Event" can be semantically annotated using EEM - The EPCIS Event Model to generate linked data, that can be exploited for internal event based traceability in supply chains involving transformation of products. For integrating provenance with traceability, we propose a mapping from EEM to PROV-O. We exemplify our approach on an abstraction of the production processes that are part of the wine supply chain.

Sustainability and supply chain management:Publications in Brazil

The number of research papers linking sustainability with supply chain management is increasing around the world. The purpose of this paper is to analyse how the publications in Brazil are considering the relationship between sustainability and supply chain management. The methodology applied consists in five major steps: (1) selection of databases and journals, (2) selection of the papers, (3) reading of papers' abstracts to select only papers that are related to business and sustainability, (4) qualitative and quantitative analysis of the selected papers' abstracts to define the main dimension of sustainability and sustainability aspect, and finally, (5) an evaluation of experts' responses to a questionnaire in the field of sustainability and supply chain in Brazil. The literature review was conducted in 120 Brazilian academic journals in which 124 papers were identified as being published in relation to sustainability, business management and companies, from 2008 until 2013. When considering the traditional Triple Bottom Line approach, the results of the analysis show that sustainability research in Brazil is focusing on the environmental dimension and SCM research is focusing on the economic dimension. Additional inputs are provided by integrating the governance dimension in the analysis to underline which actions and policies are discussed in Brazilian literature at a corporate level. The consultation of experts in the field of sustainability in Brazil was aimed at understanding better the results of the conducted literature review. One of the main conclusions is that there are large opportunities to increase publications about sustainability and SCM in the country.

Ellátási lánc kapcsolatok modellezése = Modeling of supply chain relationships

A dolgozatban az ellátási láncokban meglévő diadikus kapcsolatok minőségét állítjuk a vizsgálatok középpontjába. Az irodalomban számtalan megközelítés ismert az ellátási lánc kapcsolatok fejlődésének leírására. Ezen fejlődési elméletek inkább elméleti szinten írják le a diadikus kapcsolatok változását, annak empirikus tesztelhetőségét nem vizsgálják. Dolgozatunkban kísérletet teszünk az ellátási lánc kapcsolatok fejlődésének empirikus vizsgálatára. Arra próbálunk választ találni, hogy az életciklus hipotézis az üzleti kapcsolatok időbeli fejlődésére alkalmazható-e. = Our paper combines two approaches using data of an internet based questionnaire and applying quantitative analysis it tests the hypothesis business relationship development in time can be described with the concept of life cycle. The concept of life cycle is widely used in business research. Among others the diffusion of innovation is described using this concept, or the concept of product life cycle just to name a few. All of these researches analyze the life cycle along a specific variable (for example the volume of sales or revenue in case of the product life cycle) which (except the last stage of the cycle, the decline) has a cumulative character resulting in the widely known specific shape of a life cycle. Consequently testing a life cycle hypothesis inevitably means the acceptance of some type cumulativity in the development.

Az ellátási láncban elfoglalt pozíció és a szolgálatosodás – üzleti modellek Európában (Supply chain position and servitization – business models in Europe)

A szerzők célja, hogy megvizsgálják, milyen kölcsönhatásban áll az ellátási láncban elfoglalt pozíció, valamint a szolgálatosodás szintje az európai termelővállalatoknál. Vizsgálatuk azt mutatja, hogy a globalizáció és a termelés nemzetközivé válása mindkét tényezőt jelentős mértékben befolyásolja. A termelés globalizációs trendjeinek megfelelően így a kelet-európai (fejlődő), illetve a nyugat-európai (fejlett) országokban eltérő üzleti modellek válnak dominánssá, amelyek különböző ellátásilánc-pozícióval és más-más szintű szolgáltatásnyújtással jellemezhetőek. A domináns üzleti modellek mellett természetesen más üzleti modellek is működőképesnek bizonyulhatnak a két vizsgált régióban. A létesítmények elhelyezésére, valamint az üzleti eredményességre vonatkozó mutatók elemzésbe történő bevonásával cikkük az Európában működő üzleti modellek kialakításának okára, valamint jövőbeli fenntarthatóságára is megpróbál választ adni. __________ The objective of this paper is to examine the relationship between supply chain position and level of servitization in European manufacturing companies. The analysis shows that globalization and internationalization of production has dramatic impact on both phenomena. Due to the globalization trends different business models became dominant in the less developed Eastern-European and the more developed Western European countries, which can be characterized by different supply chain position and servitization level. Certainly other business models can also be successful in the two regions. Involving facility location motivations and business performance indicators the article shed light on the reasons of why these business models came alive and how sustainable they can be.

Optimizing Supply Chain Performance in China with Country-Specific Supply Chain Coordination

The implementation of country-specific supply chain coordination techniques ensures an optimal global supply chain performance. This paper looks at success factors going with a supply chain coordination strategy within the global supply chain of a successful, medium-sized, privately-owned company, one having locations in North America (USA), Europe (Hungary) and Asia (China). Through the shown GSL’s Chinese plant, we will endeavor to argue that increased collaboration in the supply network with appropriate supply chain coordination brings down not only the inventory level but can also improve conformance quality and reduce quoted lead times.

Cross-country and inter-temporal analysis of Supply Chain Integration (SCI): China, Hungary and the Netherlands - changes in SCI from 1996 to 2008

Using plant level data from a global survey with multiple time frames, one begun in the late 1990s, this paper introduces measures of supply chain integration and discusses the dynamic relationship between the level of integration and a set of internal and external performance measurements. Specifically, data from Hungary, The Netherlands and The People’s Republic of China are used in the analyses. The time frames considered range from the late 1990s till 2009, encompassing major changes and transitions. Our results seem to indicate that SCI has an underlying structure of four sets of indicators, namely: (1) delivery frequency from the supplier or to the customer; (2) sharing internal processes with suppliers; (3) sharing internal processes with buyers and (4) joint facility location with partners. The differences between groups in terms of several performance measures proved to be small, being mostly statistically insignificant - but looking at the ANOVA table we can conclude that in this sample of companies those having joint location with their partners seem to outperform others.

A fenntartható fejlődéssel foglalkozó nemzetközi együttműködés négy évtizede (Four Decades of International Cooperation on Sustainable Development)

Along with the recognition of the increasing environmental and social problems stemming from globalization, the need to address these problems and to develop the relevant international framework has strengthened since the 1970s. The scope of this cooperation gradually broadened and eventually it embraced all issues, which were considered to be critical for sustainable development. The summits on sustainability, namely, the UN Conference on Environment and Development in 1992, the “Rio+5” in 1997 and the World Summit on Sustainable Development in 2002, wished to respond to all unsustainable processes by adopting, reinforcing and expanding a global program. This program is based on a series of important principles and includes various goals and instruments adopted by consensus; however, it also reflects delicate compromises between development related aspirations and environmental barriers, and also between the developed and the developing countries. Actually, there is a serious implementation gap and there are also new challenges. Referring to these problems, the idea of convening an extraordinary summit in 2012 was raised and it was eventually adopted but with a rather narrow mandate and agenda. It turned out that besides the “usual” conflicts between the developed and developing countries e.g. upon the common but differentiated responsibilities or international development financing, there were also diverting views on the green economy and on the ways of institutional strengthening of the international sustainable development and environmental governance. As a consequence, the 2012 Conference concluded with rather modest results.

A fenntartható fejlődés elvei és azok érvényre jutása a banki gyakorlatban II. rész (The principles of sustainable development and their realization in the banking practice II. part)

Az utóbbi évtizedben a környezettudatos gazdálkodás szerepének felértékelődése új tevékenységi területet nyitott meg a bankok előtt, amit nemzetközi szóhasználattal élve green banking-nek neveznek. A fenntartható fejlődést támogató projektek banki finanszírozása számos lehetőséget nyit a pénzügyi intézmények számára – hírnév, új ügyfélbázis, kockázatcsökkentés, jövedelmezőség növelése –, amennyiben a bankok a fenntarthatóság elveit megfelelően integrálják működési stratégiájukba. A cikksorozat második részében a szerzők a bankok fenntartható működését támogató külső és belső motiváló tényezőit veszik vizsgálat alá, amelyet már nemzetközi elvek és megállapodások is szabályoznak és támogatnak. Kiemelt fontosságot tulajdonítanak a környezettudatos gazdálkodás banki stratégiába történő integrálásának, melynek alapjait teremthetik meg a cikkben vizsgált nemzetközi irányelvek. ________ In the last decade, a lot of publications came to light, dealing with the social and environmental responsibility of financial institutions. Banks are expected to improve their competitive advantage by demonstrating economic development, while promoting environment care and social responsibility. This sustainable finance means to manage environmental and social risks in corporate lending and project financing. Green financial institutions have developed a wide range of innovations that can support sustainable development. This article highlights a few external and internal factor that support this aim, and which are regulated by international principles. However the authors’ survey shows that in the relevant literature there are a lot of ways to define sustainability and its achievement. They suggest that all of them can be interpreted associated with green banking operation. The goal of this paper is to identify the role of financial institutions in achieving sustainable development, and stress its strategic importance. The authors also attempt to show, why and how can this sector become the promoter of sustainability.